International Convention
on the Establishment of an International Fund for Compensation for Oil
Pollution Damage

(Brussels, 18 December 1971)

THE STATES PARTIES TO THE PRESENT CONVENTION,

BEING PARTIES to the International
Convention on Civil Liability for Oil Pollution Damage, adopted at Brussels
on 29 November 1969

CONSCIOUS of the dangers of pollution
posed by the world-wide maritime carriage of oil in bulk,

CONVINCED of the need to ensure that
adequate compensation is available to persons who suffer damage caused
by pollution resulting from the escape or discharge of oil from ships,

CONSIDERING that the International
Convention of 29 November 1969, on Civil Liability for Oil Pollution Damage,
by providing a régime for compensation for pollution damage in Contracting
States and for the costs of measures, wherever taken, to prevent or minimize
such damage, represents a considerable progress towards the achievement
of this aim,

CONSIDERING HOWEVER that this régime
does not afford full compensation for victims of oil pollution damage in
all cases while it imposes an additional financial burden on shipowners,

CONSIDERING FURTHER that the economic
consequences of oil pollution damage resulting from the escape or discharge
of oil carried in bulk at sea by ships should not exclusively be borne
by the shipping industry but should in part be borne by the oil cargo interests,

CONVINCED of the need to elaborate
a compensation and indemnification system supplementary to the International
Convention on Civil Liability for Oil Pollution Damage with a view to ensuring
that full compensation will be available to victims of oil pollution incidents
and that the shipowners are at the same time given relief in respect of
the additional financial burdens imposed on them by the said Convention,

TAKING NOTE of the Resolution on the
Establishment of an International Compensation Fund for Oil Pollution Damage
which was adopted on 29 November 1969 by the International Legal Conference
on Marine Pollution Damage,

HAVE AGREED as follows:

GENERAL PROVISIONS

Article 1

For the purposes of this Convention -

1. "Liability Convention" means the International
Convention on Civil Liability for Oil Pollution Damage, adopted at Brussels
on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution
Damage", "Preventive Measures", "Incident" and "Organization", have the
same meaning as in Article I of the Liability Convention, provided however
that, for the purposes of these terms, "oil" shall be confined to persistent
hydrocarbon mineral oils.

(a) "Crude Oil" means any liquid hydrocarbon
mixture occurring naturally in the earth whether or not treated to render
it suitable for transportation. It also includes crude oils from which
certain distillate fractions have been removed (sometimes referred to as
"topped crudes") or to which certain distillate fractions have been added
(sometimes referred to as "spiked" or "reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or
residues from crude oil or blends of such materials intended for use as
a fuel for the production of heat or power of a quality equivalent to the
"American Society for Testing and Materials' Specification for Number Four
Fuel Oil (Designation D 396-69)", or heavier.

4. "Franc" means the unit referred to in Article
V, paragraph 9 of the Liability Convention.

5. "Ship's tonnage" has the same meaning as
in Article V, paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric
ton.

7. "Guarantor" means any person providing
insurance or other financial security to cover an owner's liability in
pursuant of Article VII, paragraph 1, of the Liability Convention.

8. "Terminal installation" means any site
for the storage of oil in bulk which is capable of receiving oil from waterborne
transportation, including any facility situated off-shore and linked to
such site.

9. Where an incident consists of a series
of occurrences, it shall be treated as having occurred on the date of the
first such occurrence.

Article 2

1. An International Fund for compensation
for pollution damage, to be named "The International Oil Pollution Compensation
Fund" and hereinafter referred to as "The Fund", is hereby established
with the following aims:

(a) to provide compensation for pollution
damage to the extent that the protection afforded by the Liability Convention
is inadequate;

(b) to give relief to shipowners in respect
of the additional financial burden imposed on them by the Liability Convention,
such relief being subject to conditions designed to ensure compliance with
safety at sea and other conventions;

(c) to give effect to the related purposes
set out in this Convention.

2. The Fund shall in each Contracting State
be recognized as a legal person capable under the laws of that State of
assuming rights and obligations and of being a party in legal proceedings
before the courts of that State. Each Contracting State shall recognize
the Director of the Fund (hereinafter referred to as "The Director") as
the legal representative of the Fund.

Article 3

This Convention shall apply:

1. With regard to compensation according to
Article 4, exclusively to pollution damage caused on the territory including
the territorial sea of a Contracting State, and to preventive measures
taken to prevent or minimize such damage;

2. With regard to indemnification of shipowners
and their guarantors according to Article 5, exclusively in respect of
pollution damage caused on the territory, including the territorial sea,
of a State party to the Liability Convention by a ship registered in or
flying the flag of a Contracting State and in respect of preventive measures
taken to prevent or minimize such damage.

COMPENSATION AND INDEMNIFICATION

Article 4

1. For the purpose of fulfilling its function
under Article 2, paragraph 1(a), the Fund shall pay compensation to any
person suffering pollution damage if such person has been unable to obtain
full and adequate compensation for the damage under the terms of the Liability
Convention,

(a) because no liability for the damage arises
under the Liability Convention;

(b) because the owner liable for the damage
under the Liability Convention is financially incapable of meeting his
obligations in full and any financial security that may be provided under
Article VII of that Convention does not cover or is insufficient to satisfy
the claims for compensation for the damage; an owner being treated as financially
incapable of meeting his obligations and a financial security being treated
as insufficient if the person suffering the damage has been unable to obtain
full satisfaction of the amount of compensation due under the Liability
Convention after having taken all reasonable steps to pursue the legal
remedies available to him;

(c) because the damage exceeds the owner's
liability under the Liability Convention as limited pursuant to Article
V, paragraph 1, of that Convention or under the terms of any other international
Convention in force or open for signature, ratification or accession at
the date of this Convention.

Expenses reasonably incurred or sacrifices
reasonably made by the owner voluntarily to prevent or minimize pollution
damage shall be treated as pollution damage for the purposes of this Article.

2. The Fund shall incur no obligation under
the preceding paragraph if:

(a) it proves that the pollution damage resulted
from an act of war, hostilities, civil war or insurrection or was caused
by oil which has escaped or been discharged from a warship or other ship
owned or operated by a State and used, at the time of the incident, only
on Government non-commercial service; or

(b) the claimant cannot prove that the damage
resulted from an incident involving one or more ships.

3. If the Fund proves that the pollution damage
resulted wholly or partially either from an act or omission done with intent
to cause damage by the person who suffered the damage or from the negligence
of that person, the Fund may be exonerated wholly or partially from its
obligation to pay compensation to such person provided, however, that there
shall be no such exoneration with regard to such preventive measures which
are compensated under paragraph 1. The Fund shall in any event be exonerated
to the extent that the shipowner may have been exonerated under Article
III, paragraph 3, of the Liability Convention.

4. (a) Except as otherwise provided in subparagraph
(b) of this paragraph, the aggregate amount of compensation payable by
the Fund under this Article shall in respect of any one incident be limited,
so that the total sum of that amount and the amount of compensation actually
paid under the Liability Convention for pollution damage caused in the
territory of the Contracting States, including any sums in respect of which
the Fund is under an obligation to indemnify the owner pursuant to Article
5, paragraph 1, of this Convention, shall not exceed 450 million francs.

(b) The aggregate amount of compensation payable
by the Fund under this Article for pollution damage resulting from a natural
phenomenon of an exceptional, inevitable and irresistible character shall
not exceed 450 million francs.

5. Where the amount of established claims
against the Fund exceeds the aggregate amount of compensation payable under
paragraph 4, the amount available shall be distributed in such a manner
that the proportion between any established claim and the amount of compensation
actually recovered by the claimant under the Liability Convention and this
Convention shall be the same for all claimants.

6. The Assembly of the Fund (hereinafter referred
to as "the Assembly") may, having regard to the experience of incidents
which have occurred and in particular the amount of damage resulting therefrom
and to changes in the monetary values, decide that the amount of 450 million
francs referred to in paragraph 4, sub-paragraphs (a) and (b), shall be
changed; provided, however, that this amount shall in no case exceed 900
million francs or be lower than 450 million francs. The changed amount
shall apply to incidents which occur after the date of the decision effecting
the change.

7. The Fund shall, at the request of a Contracting
State, use its good offices as necessary to assist that State to secure
promptly such personnel, material and services as are necessary to enable
the State to take measures to prevent or mitigate pollution damage arising
from an incident in respect of which the Fund may be called upon to pay
compensation under this Convention.

8. The Fund may on conditions to be laid down
in the Internal Regulations provide credit facilities with a view to the
taking of preventive measures against pollution damage arising from a particular
incident in respect of which the Fund may be called upon to pay compensation
under this Convention.

Article 5

1. For the purpose of fulfilling its function
under Article 2, paragraph 1(b), the Fund shall indemnify the owner and
his guarantor for that portion of the aggregate amount of liability under
the Liability Convention which:

(a) is in excess of an amount equivalent to
1,500 francs for each ton of the ship's tonnage or of an amount of 125
million francs, whichever is the less, and

(b) is not in excess of an amount equivalent
to 2,000 francs for each ton of the said tonnage or an amount of 210 million
francs, whichever is the less,

provided, however, that the Fund shall incur
no obligation under this paragraph where the pollution damage resulted
from the wilful misconduct of the owner himself.

2. The Assembly may decide that the Fund shall,
on conditions to be laid down in the Internal Regulations, assume the obligations
of a guarantor in respect of ships referred to in Article 3, paragraph
2, with regard to the portion of liability referred to in paragraph 1 of
this Article. However, the Fund shall assume such obligations only if the
owner so requests and if he maintains adequate insurance or other financial
security covering the owner's liability under the Liability Convention
up to an amount equivalent to 1,500 francs for each ton of the ship's tonnage
or an amount of 125 million francs, whichever is the less. If the Fund
assumes such obligations, the owner shall in each Contracting State be
considered to have complied with Article VII of the Liability Convention
in respect of the portion of his liability mentioned above.

3. The Fund may be exonerated wholly or partially
from its obligations under paragraph 1 towards the owner and his guarantor
if the Fund proves that as a result of the actual fault or privity of the
owner:

(a) the ship from which the oil causing the
pollution damage escaped did not comply with the requirements laid down
in:

(i) the International Convention for the Prevention
of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating
thereto, and as amended by Resolutions MEPC.14(20), MEPC.47(31), MEPC.51(32)
and MEPC.52(32) adopted by the Marine Environment Protection Committee
of the International Maritime Organization on 7 September 1984, 4 July
1991, 6 March 1992 and 6 March 1992 respectively; or

(ii) the International Convention for the
Safety of Life at Sea, 1974, as modified by the Protocol of 1978 relating
thereto, and as amended by Resolutions MSC.1(XLV), MSC.6(48), MSC.13(57)
and MSC.27(61) adopted by the Maritime Safety Committee of the International
Maritime Organization on 20 November 1981, 17 June 1983, 11 April 1989
and 11 December 1992, respectively, and as amended by Resolution 1 adopted
on 9 November 1988 by the Conference of Contracting Governments to the
International Convention for the Safety of Life at Sea, 1974 on the Global
Maritime Distress and Safety System; or

(iii) the International Convention on Load
Lines, 1966; or

(iv) the Convention on the International Regulations
for Preventing Collisions at Sea, 1972; or

(v) any amendments to the above-mentioned
Conventions which have been determined as being of an important nature
in accordance with Article XVI(5) of the Convention mentioned under (i),
Article IX(e) of the Convention mentioned under (ii) or Article 29(3)(d)
or (4)(d) of the Convention mentioned under (iii), provided, however, that
such amendments had been in force for at least twelve months at the time
of the incident;

and

(b) the incident or damage was caused wholly
or partially by such non-compliance.

The provisions of this paragraph shall apply
irrespective of whether the Contracting State in which the ship was registered
or whose flag it was flying is a Party to the relevant Instrument.

4. Upon the entry into force of a new Convention
designed to replace, in whole or in part, any of the Instruments specified
in paragraph 3, the Assembly may decide at least six months in advance
a date on which the new Convention will replace such Instrument or part
thereof for the purpose of paragraph 3. However, any State Party to this
Convention may declare to the Director before that date that it does not
accept such replacement; in which case the decision of the Assembly shall
have no effect in respect of a ship registered in, or flying the flag of,
that State at the time of the incident. Such a declaration may be withdrawn
at any later date and shall in any event cease to have effect when the
State in question becomes a party to such new Convention.

5. A ship complying with the requirements
in an amendment to an Instrument specified in paragraph 3 or with requirements
in a new Convention, where the amendment or Convention is designed to replace
in whole or in part such Instrument, shall be considered as complying with
the requirements in the said Instrument for the purposes of paragraph 3.

6. Where the Fund, acting as a guarantor by
virtue of paragraph 2, has paid compensation for pollution damage in accordance
with the Liability Convention, it shall have a right of recovery from the
owner if and to the extent that the Fund would have been exonerated pursuant
to paragraph 3 from its obligations under paragraph 1 to indemnify the
owner.

7. Expenses reasonably incurred and sacrifices
reasonably made by the owner voluntarily to prevent or minimize pollution
damage shall be treated as included in the owner's liability for the purposes
of this Article.

Article 6

1. Rights to compensation under Article 4
or indemnification under Article 5 shall be extinguished unless an action
is brought thereunder or a notification has been made pursuant to Article
7, paragraph 6, within three years from the date when the damage occurred.
However, in no case shall an action be brought after six years from the
date of the incident which caused the damage.

2. Notwithstanding paragraph 1, the right
of the owner or his guarantor to seek indemnification from the Fund pursuant
to Article 5, paragraph 1, shall in no case be extinguished before the
expiry of a period of six months as from the date on which the owner or
his guarantor acquired knowledge of the bringing of an action against him
under the Liability Convention.

Article 7

1. Subject to the subsequent provisions of
this Article, any action against the Fund for compensation under Article
4 or indemnification under Article 5 of this Convention shall be brought
only before a court competent under Article IX of the Liability Convention
in respect of actions against the owner who is or who would, but for the
provisions of Article III, paragraph 2, of that Convention, have been liable
for pollution damage caused by the relevant incident.

2. Each Contracting State shall ensure that
its courts possess the necessary jurisdiction to entertain such actions
against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution
damage has been brought before a court competent under Article IX of the
Liability Convention against the owner of a ship or his guarantor, such
court shall have exclusive jurisdictional competence over any action against
the Fund for compensation or indemnification under the provisions of Article
4 or 5 of this Convention in respect of the same damage. However, where
an action for compensation for pollution damage under the Liability Convention
has been brought before a court in a State Party to the Liability Convention
but not to this Convention, any action against the Fund under Article 4
or under Article 5, paragraph 1, of this Convention shall at the option
of the claimant be brought either before a court of the State where the
Fund has its headquarters or before any court of a State Party to this
Convention competent under Article IX of the Liability Convention.

4. Each Contracting State shall ensure that
the Fund have the right to intervene as a party to any legal proceedings
instituted in accordance with Article IX of the Liability Convention before
a competent court of that State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph
6, the Fund shall not be bound by any judgment or decision in proceedings
to which it has not been a party or by any settlement to which it is not
a party.

6. Without prejudice to the provisions of
paragraph 4, where an action under the Liability Convention for compensation
for pollution damage has been brought against an owner or his guarantor
before a competent court in a Contracting State, each party to the proceedings
shall be entitled under the national law of that State to notify the Fund
of the proceedings. Where such notification has been made in accordance
with the formalities required by the law of the court seized and in such
time and in such a manner that the Fund has in fact been in a position
effectively to intervene as a party to the proceedings, any judgment rendered
by the court in such proceedings shall, after it has become final and enforceable
in the State where the judgment was given, become binding upon the Fund
in the sense that the facts and findings in that judgment may not be disputed
by the Fund even if the Fund has not actually intervened in the proceedings.

Article 8

Subject to any decision concerning the distribution
referred to in Article 4, paragraph 5, any judgment given against the Fund
by a court having jurisdiction in accordance with Article 7, paragraphs
1 and 3, shall, when it has become enforceable in the State of origin and
is in that State no longer subject to ordinary forms of review, be recognized
and enforceable in each Contracting State on the same conditions as are
prescribed in Article X of the Liability Convention.

Article 9

1. Subject to the provisions of Article 5,
the Fund shall, in respect of any amount of compensation for pollution
damage paid by the Fund in accordance with Article 4, paragraph 1, of this
Convention, acquire by subrogation the rights that the person so compensated
may enjoy under the Liability Convention against the owner or his guarantor.

2. Nothing in this Convention shall prejudice
any right of recourse or subrogation of the Fund against persons other
than those referred to in the preceding paragraph. In any event the right
of the Fund to subrogation against such person shall not be less favourable
than that of an insurer of the person to whom compensation or indemnification
has been paid.

3. Without prejudice to any other rights of
subrogation or recourse against the Fund which may exist, a Contracting
State or agency thereof which has paid compensation for pollution damage
in accordance with provisions of national law shall acquire by subrogation
the rights which the person so compensated would have enjoyed under this
Convention.

CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made
in respect of each Contracting State by any person who, in the calendar
year referred to in Article 11, paragraph 1, as regards initial contributions
and in Article 12, paragraphs 2(a) or (b), as regards annual contributions,
has received in total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations
in the territory of that State contributing oil carried by sea to such
ports or terminal installations; and

(b) in any installations situated in the territory
of that Contracting State contributing oil which has been carried by sea
and discharged in a port or terminal installation of a non-Contracting
State, provided that contributing oil shall only be taken into account
by virtue of this sub-paragraph on first receipt in a Contracting State
after its discharge in that non-Contracting State.

2. (a) For the purposes of paragraph 1, where
the quantity of contributing oil received in the territory of a Contracting
State by any person in a calendar year when aggregated with the quantity
of contributing oil received in the same Contracting State in that year
by any associated person or persons exceeds 150,000 tons, such person shall
pay contributions in respect of the actual quantity received by him notwithstanding
that that quantity did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary
or commonly controlled entity. The question whether a person comes within
this definition shall be determined by the national law of the State concerned.

Article 11

1. In respect of each Contracting State initial
contributions shall be made of an amount which shall for each person referred
to in Article 10 be calculated on the basis of a fixed sum for each ton
of contributing oil received by him during the calendar year preceding
that in which this Convention entered into force for that State.

2. The sum referred to in paragraph 1 shall
be determined by the Assembly within two months after the entry into force
of this Convention. In performing this function the Assembly shall, to
the extent possible, fix the sum in such a way that the total amount of
initial contributions would, if contributions were to be made in respect
of 90 per cent of the quantities of contributing oil carried by sea in
the world, equal 75 million francs.

3. The initial contributions shall in respect
of each Contracting State be paid within three months following the date
at which the Convention entered into force for that State.

Article 12

1. With a view to assessing for each person
referred to in Article 10 the amount of annual contributions due, if any,
and taking account of the necessity to maintain sufficient liquid funds,
the Assembly shall for each calendar year make an estimate in the form
of a budget of:

(i) Expenditure

(a) costs and expenses of the administration
of the Fund in the relevant year and any deficit from operations in preceding
years;

(b) payments to be made by the Fund in the
relevant year for the satisfaction of claims against the Fund due under
Article 4 or 5, including repayment on loans previously taken by the Fund
for the satisfaction of such claims, to the extent that the aggregate amount
of such claims in respect of any one incident does not exceed 15 million
francs;

(c) payments to be made by the Fund in the
relevant year for the satisfaction of claims against the Fund due under
Article 4 or 5, including repayments on loans previously taken by the Fund
for the satisfaction of such claims, to the extent that the aggregate amount
of such claims in respect of any one incident is in excess of 15 million
francs;

(ii) Income

(a) surplus funds from operations in preceding
years, including any interest;

(b) initial contributions to be paid in the
course of the year;

(c) annual contributions, if required to balance
the budget;

(d) any other income.

2. For each person referred to in Article
10 the amount of his annual contribution shall be determined by the Assembly
and shall be calculated in respect of each Contracting State:

(a) in so far as the contribution is for the
satisfaction of payments referred to in paragraph 1(i)(a) and (b) on the
basis of a fixed sum for each ton of contributing oil received in the relevant
State by such persons during the preceding calendar year; and

(b) in so far as the contribution is for the
satisfaction of payments referred to in paragraph 1(i)(c) of this Article
on the basis of a fixed sum for each ton of contributing oil received by
such person during the calendar year preceding that in which the incident
in question occurred, provided that State was a party to this Convention
at the date of the incident.

3. The sums referred to in paragraph 2 above
shall be arrived at by dividing the relevant total amount of contributions
required by the total amount of contributing oil received in all Contracting
States in the relevant year.

4. The Assembly shall decide the portion of
the annual contribution which shall be immediately paid in cash and decide
on the date of payment. The remaining part of each annual contribution
shall be paid upon notification by the Director.

5. The Director may, in cases and in accordance
with conditions to be laid down in the Internal Regulations of the Fund,
require a contributor to provide financial security for the sums due from
him.

6. Any demand for payments made under paragraph
4 shall be called rateably from all individual contributors.

Article 13

1. The amount of any contribution due under
Article 12 and which is in arrear shall bear interest at a rate which shall
be determined by the Assembly for each calendar year provided that different
rates may be fixed for different circumstances.

2. Each Contracting State shall ensure that
any obligation to contribute to the Fund arising under this Convention
in respect of oil received within the territory of that State is fulfilled
and shall take any appropriate measures under its law, including the imposing
of such sanctions as it may deem necessary, with a view to the effective
execution of any such obligation; provided, however, that such measures
shall only be directed against those persons who are under an obligation
to contribute to the Fund.

3. Where a person who is liable in accordance
with the provisions of Articles 10 and 11 to make contributions to the
Fund does not fulfil his obligations in respect of any such contribution
or any part thereof and is in arrear for a period exceeding three months,
the Director shall take all appropriate action against such person on behalf
of the Fund with a view to the recovery of the amount due. However, where
the defaulting contributor is manifestly insolvent or the circumstances
otherwise so warrant, the Assembly may, upon recommendation of the Director,
decide that no action shall be taken or continued against the contributor.

Article 14

1. Each Contracting State may at the time
when it deposits its instrument of ratification or accession or at any
time thereafter declare that it assumes itself obligations that are incumbent
under this Convention on any person who is liable to contribute to the
Fund in accordance with Article 10, paragraph 1, in respect of oil received
within the territory of that State. Such declaration shall be made in writing
and shall specify which obligations are assumed.

2. Where a declaration under paragraph 1 is
made prior to the entry into force of this Convention in accordance with
Article 40, it shall be deposited with the Secretary-General of the Organization
who shall after the entry into force of the Convention communicate the
declaration to the Director.

3. A declaration under paragraph 1 which is
made after the entry into force of this Convention shall be deposited with
the Director.

4. A declaration made in accordance with this
Article may be withdrawn by the relevant State giving notice thereof in
writing to the Director. Such notification shall take effect three months
after the Director's receipt thereof.

5. Any State which is bound by a declaration
made under this Article shall, in any proceedings brought against it before
a competent court in respect of any obligation specified in the declaration,
waive any immunity that it would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that
any person who receives contributing oil within its territory in such quantities
that he is liable to contribute to the Fund appears on a list to be established
and kept up to date by the Director in accordance with the subsequent provisions
of this Article.

2. For the purposes set out in paragraph 1,
each Contracting State shall communicate, at a time and in the manner to
be prescribed in the Internal Regulations, to the Director the name and
address of any person who in respect of that State is liable to contribute
to the Fund pursuant to Article 10, as well as data on the relevant quantities
of contributing oil received by any such person during the preceding calendar
year.

3. For the purposes of ascertaining who are,
at any given time, the persons liable to contribute to the Fund in accordance
with Article 10, paragraph 1, and of establishing, where applicable, the
quantities of oil to be taken into account for any such person when determining
the amount of his contribution, the list shall be prima facie evidence
of the facts stated therein.

ORGANIZATION AND ADMINISTRATION

Article 16

The Fund shall have an Assembly, a Secretariat
headed by a Director and, in accordance with the provisions of Article
21, an Executive Committee.

ASSEMBLY

Article 17

The Assembly shall consist of all Contracting
States to this Convention.

Article 18

The functions of the Assembly shall, subject
to the provisions of Article 26, be:

1. to elect at each regular session its Chairman
and two Vice-Chairmen who shall hold office until the next regular session;

2. to determine its own rules of procedure,
subject to the provisions of this Convention;

3. to adopt Internal Regulations necessary
for the proper functioning of the Fund;

4. to appoint the Director and make provisions
for the appointment of such other personnel as may be necessary and determine
the terms and conditions of service of the Director and other personnel;

5. to adopt the annual budget and fix the
annual contributions;

6. to appoint auditors and approve the accounts
of the Fund;

7. to approve settlements of claims against
the Fund, to take decisions in respect of the distribution among claimants
of the available amount of compensation in accordance with Article 4, paragraph
5, and to determine the terms and conditions according to which provisional
payments in respect of claims shall be made with a view to ensuring that
victims of pollution damage are compensated as promptly as possible;

8. to elect the members of the Assembly to
be represented on the Executive Committee, as provided in Articles 21,
22 and 23;

9. to establish any temporary or permanent
subsidiary body it may consider to be necessary;

10. to determine which non-Contracting States
and which inter-governmental and international non-governmental organizations
shall be admitted to take part, without voting rights, in meetings of the
Assembly, the Executive Committee, and subsidiary bodies;

11. to give instructions concerning the administration
of the Fund to the Director, the Executive Committee and subsidiary bodies;

12. to review and approve the reports and
activities of the Executive Committee;

13. to supervise the proper execution of the
Convention and of its own decisions;

14. to perform such other functions as are
allocated to it under the Convention or are otherwise necessary for the
proper operation of the Fund.

Article 19

1. Regular sessions of the Assembly shall
take place once every calendar year upon convocation by the Director; provided,
however, that if the Assembly allocates to the Executive Committee the
functions specified in Article 18, paragraph 5, regular sessions of the
Assembly shall be held once every two years.

2. Extraordinary sessions of the Assembly
shall be convened by the Director at the request of the Executive Committee
or of at least one-third of the members of the Assembly and may be convened
on the Director's own initiative after consultation with the Chairman of
the Assembly. The Director shall give members at least thirty days' notice
of such sessions.

Article 20

A majority of the members of the Assembly
shall constitute a quorum for its meetings.

EXECUTIVE COMMITTEE

Article 21

The Executive Committee shall be established
at the first regular session of the Assembly after the date on which the
number of Contracting States reaches fifteen.

Article 22

1. The Executive Committee shall consist of
one-third of the members of the Assembly but of not less than seven or
more than fifteen members. Where the number of members of the Assembly
is not divisible by three, the one-third referred to shall be calculated
on the next higher number which is divisible by three.

2. When electing the members of the Executive
Committee the Assembly shall:

(a) secure an equitable geographical distribution
of the seats on the Committee on the basis of an adequate representation
of Contracting States particularly exposed to the risks of oil pollution
and of Contracting States having large tanker fleets; and

(b) elect one half of the members of the Committee,
or in case the total number of members to be elected is uneven, such number
of the members as is equivalent to one half of the total number less one,
among those Contracting States in the territory of which the largest quantities
of oil to be taken into account under Article 10 were received during the
preceding
calendar year, provided that the number of States eligible under this sub-paragraph
shall be limited as shown in the table below:

Total number of Members on the
Committee

Number of States eligible under sub-paragraph
(b)

Number of States to be elected under
sub-paragraph (b)

7

5

3

8

6

4

9

6

4

10

8

5

11

8

5

12

9

6

13

9

6

14

11

7

15

11

7

3. A member of the Assembly which was eligible
but was not elected under sub-paragraph (b) shall not be eligible to be
elected for any remaining seat on the Executive Committee.

Article 23

1. Members of the Executive Committee shall
hold office until the end of the next regular session of the Assembly.

2. Except to the extent that may be necessary
for complying with the requirements of Article 22, no State Member of the
Assembly may serve on the Executive Committee for more than two consecutive
terms.

Article 24

The Executive Committee shall meet at least
once every calendar year at thirty days' notice upon convocation by the
Director, either on his own initiative or at the request of its Chairman
or of at least one-third of its members. It shall meet at such places as
may be convenient.

Article 25

At least two-thirds of the members of the
Executive Committee shall constitute a quorum for its meetings.

Article 26

1. The functions of the Executive Committee
shall be:

(a) to elect its Chairman and adopt its own
rules of procedure, except as otherwise provided in this Convention;

(b) to assume and exercise in place of the
Assembly the following functions:

(i) making provision for the appointment of
such personnel, other than the Director, as may be necessary and determining
the terms and conditions of service of such personnel;

(ii) approving settlements of claims against
the Fund and taking all other steps envisaged in relation to such claims
in Article 18, paragraph 7;

(iii) giving instructions to the Director
concerning the administration of the Fund and supervising the proper execution,
by him of the Convention, of the decisions of the Assembly and of the Committee's
own decisions; and

(c) to perform such other functions as are
allocated to it by the Assembly.

2. The Executive Committee shall each year
prepare and publish a report of the activities of the Fund during the previous
calendar year.

Article 27

Members of the Assembly who are not members
of the Executive Committee shall have the right to attend its meetings
as observers.

SECRETARIAT

Article 28

1. The Secretariat shall comprise the Director
and such staff as the administration of the Fund may require.

2. The Director shall be the legal representative
of the Fund.

Article 29

1. The Director shall be the chief administrative
officer of the Fund and shall, subject to the instructions given to him
by the Assembly and by the Executive Committee, perform those functions
which are assigned to him by this Convention, the Internal Regulations,
the Assembly and the Executive Committee.

2. The Director shall in particular:

(a) appoint the personnel required for the
administration of the Fund;

(b) take all appropriate measures with a view
to the proper administration of the Fund's assets;

(c) collect the contributions due under this
Convention while observing in particular the provisions of Article 13,
paragraph 3;

(d) to the extent necessary to deal with claims
against the Fund and carry out the other functions of the Fund, employ
the services of legal, financial and other experts;

(e) take all appropriate measures for dealing
with claims against the Fund within the limits and on conditions to be
laid down in the Internal Regulations, including the final settlement of
claims without the prior approval of the Assembly or the Executive Committee
where these Regulations so provide;

(f) prepare and submit to the Assembly or
to the Executive Committee, as the case may be, the financial statements
and budget estimates for each calendar year;

(g) assist the Executive Committee in the
preparation of the report referred to in Article 26, paragraph 2;

(h) prepare, collect and circulate the papers,
documents, agenda, minutes and information that may be required for the
work of the Assembly, the Executive Committee and subsidiary bodies.

Article 30

In the performance of their duties the Director
and the staff and experts appointed by him shall not seek or receive instructions
from any Government or from any authority external to the Fund. They shall
refrain from an action which might reflect on their position as international
officials. Each Contracting State on its part undertakes to respect the
exclusively international character of the responsibilities of the Director
and the staff and experts appointed by him, and not to seek to influence
them in the discharge of their duties.

FINANCES

Article 31

1. Each Contracting State shall bear the salary,
travel and other expenses of its own delegation to the Assembly and of
its representatives on the Executive Committee and on subsidiary bodies.

2. Any other expenses incurred in the operation
of the Fund shall be borne by the Fund.

VOTING

Article 32

The following provisions shall apply to voting
in the Assembly and the Executive Committee:

(a) each member shall have one vote;

(b) except as otherwise provided in Article
33, decisions of the Assembly and the Executive Committee shall be by a
majority vote of the members present and voting;

(c) decisions where a three-fourths or a two-thirds
majority is required shall be by a three-fourths or two-thirds majority
vote, as the case may be, of those present;

(d) for the purpose of this Article the phrase
"members present" means "members present at the meeting at the time of
the vote", and the phrase "members present and voting" means "members present
and casting an affirmative or negative vote". Members who abstain from
voting shall be considered as not voting.

Article 33

1. The following decisions of the Assembly
shall require a three-fourths majority:

(a) an increase in accordance with Article
4, paragraph 6, in the maximum amount of compensation payable by the Fund;

(b) a determination, under Article 5, paragraph
4, relating to the replacement of the Instruments referred to in that paragraph;

(c) the allocation to the Executive Committee
of the functions specified in Article 18, paragraph 5.

2. The following decisions of the Assembly
shall require a two-thirds majority:

(a) a decision under Article 13, paragraph
3, not to take or continue action against a contributor;

1. The Fund, its assets, income, including
contributions, and other property shall enjoy in all Contracting States
exemption from all direct taxation.

2. When the Fund makes substantial purchases
of movable or immovable property, or has important work carried out which
is necessary for the exercise of its official activities and the cost of
which includes indirect taxes or sales taxes, the Governments of Member
States shall take, whenever possible, appropriate measures for the remission
or refund of the amount of such duties and taxes.

3. No exemption shall be accorded in the case
of duties, taxes or dues which merely constitute payment for public utility
services.

4. The Fund shall enjoy exemption from all
customs duties, taxes and other related taxes on articles imported or exported
by it or on its behalf for its official use. Articles thus imported shall
not be transferred either for consideration or gratis on the territory
of the country into which they have been imported except on conditions
agreed by the government of that country.

5. Persons contributing to the Fund and victims
and owners of ships receiving compensation from the Fund shall be subject
to the fiscal legislation of the State where they are taxable, no special
exemption or other benefit being conferred on them in this respect.

6. Information relating to individual contributors
supplied for the purpose of this Convention shall not be divulged outside
the Fund except in so far as it may be strictly necessary to enable the
Fund to carry out its functions including the bringing and defending of
legal proceedings.

7. Independently of existing or future regulations
concerning currency or transfers, Contracting States shall authorize the
transfer and payment of any contribution to the Fund and of any compensation
paid by the Fund without any restriction.

TRANSITIONAL PROVISIONS

Article 35

1. The Fund shall incur no obligation whatsoever
under Article 4 or 5 in respect of incidents occurring within a period
of one hundred and twenty days after the entry into force of this Convention.

2. Claims for compensation under Article 4
and claims for indemnification under Article 5, arising from incidents
occurring later than one hundred and twenty days but not later than two
hundred and forty days after the entry into force of this Convention may
not be brought against the Fund prior to the elapse of the two hundred
and fortieth day after the entry into force of this Convention.

Article 36

The Secretary-General of the Organization
shall convene the first session of the Assembly. This session shall take
place as soon as possible after entry into force of this Convention and,
in any case, not more than thirty days after such entry into force.

FINAL CLAUSES

Article 37

1. This Convention shall be open for signature
by the States which have signed or which accede to the Liability Convention,
and by any State represented at the Conference on the Establishment of
an International Fund for Compensation for Oil Pollution Damage, 1971.
The Convention shall remain open for signature until 31 December 1972.

2. Subject to paragraph 4, this Convention
shall be ratified, accepted or approved by the States which have signed
it.

3. Subject to paragraph 4, this Convention
is open for accession by States which did not sign it.

4. This Convention may be ratified, accepted,
approved or acceded to, only by States which have ratified, accepted, approved
or acceded to the Liability Convention.

Article 38

1. Ratification, acceptance, approval or accession
shall be effected by the deposit of a formal instrument to that effect
with the Secretary-General of the Organization.

2. Any instrument of ratification, acceptance,
approval or accession deposited after the entry into force of an amendment
to this Convention with respect to all existing Contracting States or after
the completion of all measures required for the entry into force of the
amendment with respect to those Parties shall be deemed to apply to the
Convention as modified by the amendment.

Article 39

Before this Convention comes into force a
State shall, when depositing an instrument referred to in Article 38, paragraph
1, and annually thereafter at a date to be determined by the Secretary-General
of the Organization, communicate to him the name and address of any person
who in respect of that State would be liable to contribute to the Fund
pursuant to Article 10 as well as data on the relevant quantities of contributing
oil received by any such person in the territory of that State during the
preceding calendar year.

Article 40

1. This Convention shall enter into force
on the ninetieth day following the date on which the following requirements
are fulfilled:

(a) at least eight States have deposited instruments
of ratification, acceptance, approval or accession with the Secretary-General
of the Organization, and

(b) the Secretary-General of the Organization
has received information in accordance with Article 39 that those persons
in such States who would be liable to contribute pursuant to Article 10
have received during the preceding calendar year a total quantity of at
least 750 million tons of contributing oil.

2. However, this Convention shall not enter
into force before the Liability Convention has entered into force.

3. For each State which subsequently ratifies,
accepts, approved or accedes to it, this Convention shall enter into force
on the ninetieth day after deposit by such State of the appropriate instrument.

Article 41

1. This Convention may be denounced by any
Contracting State at any time after the date on which the Convention comes
into force for that State.

2. Denunciation shall be effected by the deposit
of an instrument with the Secretary-General of the Organization.

3. A denunciation shall take effect one year,
or such longer period as may be specified in the instrument of denunciation,
after its deposit with the Secretary-General of the Organization.

4. Denunciation of the Liability Convention
shall be deemed to be a denunciation of this Convention. Such denunciation
shall take effect on the same date as the denunciation of the Liability
Convention takes effect according to paragraph 3 of Article XVI of that
Convention.

5. Notwithstanding a denunciation by a Contracting
State pursuant to this Article, any provisions of this Convention relating
to the obligations to make contributions under Article 10 with respect
to an incident referred to in Article 12, paragraph 2(b), and occurring
before the denunciation takes effect shall continue to apply.

Article 42

1. Any Contracting State may, within ninety
days after the deposit of an instrument of denunciation the result of which
it considers will significantly increase the level of contributions for
remaining Contracting States, request the Director to convene an extraordinary
session of the Assembly. The Director shall convene the Assembly to meet
not later than sixty days after receipt of the request.

2. The Director may convene, on his own initiative,
an extraordinary session of the Assembly to meet within sixty days after
the deposit of any instrument of denunciation, if he considers that such
denunciation will result in a significant increase in the level of contributions
for the remaining Contracting States.

3. If the Assembly at an extraordinary session
convened in accordance with paragraph 1 or 2 decides that the denunciation
will result in a significant increase in the level of contributions for
the remaining Contracting States, any such State may, not later than one
hundred and twenty days before the date on which that denunciation takes
effect, denounce this Convention with effect from the same date.

Article 43

1. This Convention shall cease to be in force
on the date when the number of Contracting States falls below three.

2. Contracting States which are bound by this
Convention on the date before the day it ceases to be in force shall enable
the Fund to exercise its functions as described under Article 44 and shall,
for that purpose only, remain bound by this Convention.

Article 44

1. If this Convention ceases to be in force,
the Fund shall nevertheless

(a) meet its obligations in respect of any
incident occurring before the Convention ceased to be in force;

(b) be entitled to exercise its rights to
contributions to the extent that these contributions are necessary to meet
the obligations under sub-paragraph (a), including expenses for the administration
of the Fund necessary for this purpose.

2. The Assembly shall take all appropriate
measures to complete the winding up of the Fund, including the distribution
in an equitable manner of any remaining assets among those persons who
have contributed to the Fund.

3. For the purposes of this Article the Fund
shall remain a legal person.

Article 45

1. A Conference for the purpose of revising
or amending this Convention may be convened by the Organization.

2. The Organization shall convene a Conference
of the Contracting States for the purpose of revising or amending this
Convention at the request of not less than one-third of all Contracting
States.

Article 46

1. This Convention shall be deposited with
the Secretary-General of the Organization.

2. The Secretary-General of the Organization
shall:

(a) inform all States which have signed or
acceded to this Convention of:

(i) each new signature or deposit of instrument
and the date thereof;

(ii) the date of entry into force of the Convention;

(iii) any denunciation of the Convention and
the date on which it takes effect;

(b) transmit certified true copies of this
Convention to all Signatory States and to all States which accede to the
Convention.

Article 47

As soon as this Convention enters into force,
a certified true copy thereof shall be transmitted by the Secretary-General
of the Organization to the Secretariat of the United Nations for registration
and publication in accordance with Article 102 of the Charter of the United
Nations.

Article 48

This Convention is established in a single
original in the English and French languages, both texts being equally
authentic. Official translations in the Russian and Spanish languages shall
be prepared by the Secretariat of the Organization and deposited with the
signed original.

IN WITNESS WHEREOF the undersigned
plenipotentiaries being duly authorized for that purpose have signed the
present Convention.

DONE at Brussels this eighteenth day
of December one thousand nine hundred and seventy-one.